I have spoken to many landlords and would-be-landlords so far this year – many of them regular readers of this blog. I have spent much of this week catching up with many of them and there seems to be a change in the Warrington market.
What is the new trend?
Some of these landlords have bought and completed already this year, but are finding that the high rents indicated as achievable by selling agents have failed to attract any tenants. Some of those landlords need to let swiftly, from a financial perspective, so are reducing the advertised rent... In turn for some, this has made their monthly returns very marginal.
Further to this, the number of investors registering to buy has fallen dramatically. The chances of buying and completing before the Stamp Duty changes apply are ebbing away fast.
If you buy today you need to have a proactive solicitor, a chain free property (and if using finance, a very good lender) to stand a chance of beating the deadline.
We are again seeing some price reductions creep on to Rightmove (Rightmove indicates there have been more than 30 price reductions in the month of February, about 13% of what is available), primarily from those agents that are over ambitious with their pricing in an attempt to attract new business.
What happens next?
So, if the heat is coming out of over ambitious rental and sale prices, where are prices going to go? The Brexit referendum looms large in June and elections always have a dampening effect on the property market. I expect the referendum to have a similar effect.
Uncertainty is always bad news for the property market. We are all still a little uncertain of the impact the 2017 proposed tax changes are going to have. Are we really going to see thousands of landlords off loading their portfolios as the media suggest? I think not. At least, not in Warrington.
Supply and demand
The demand for good quality rental properties in Warrington remains and is not going to go away. However, tenants, like the rest of us, do not have ever deepening pockets, so I think we will see rents stabilise at their current (still high) levels. However if you are needing to achieve speculative high rents for your new shiny buy-to-let, you may want to double check your figures. In particular if you are paying a high price. Remember the rules of supply and demand.
Flat sale prices have been driven up by the lack of supply of houses NOT the strong demand for flats!
A bit of advice
As always if you are investing in property in Warrington seek out sound advice. Many landlords discuss their purchase with me before proceeding.
Questions you need to think about are:
· What is really the achievable rent?
· What work will I really need to do to maximise my return?
· Is this the right price to be paying?
· Will this location let readily?
Whoever you turn to make sure they know the area and the lettings market.
If you are a landlord or thinking of becoming one for the first time, and you want to read more articles like this about the Warrington Property Market together with regular postings on what I consider the best buy to let deals in Warrington, out of the many of properties on the market, irrespective of which agent is selling it, then feel free to get in touch! email me on manoj@hamletwarrington.co.uk
If you are in the area feel free to pop into the office we are based on 6 Bankside, Crosfield St, WA1 1UP plenty of free parking and the kettle is always on.
If you are in the area feel free to pop into the office we are based on 6 Bankside, Crosfield St, WA1 1UP plenty of free parking and the kettle is always on.
Don't forget to visit the links below to view back dated deals and Warrington Property News.
Twitter, https://twitter.com/HHWarrington
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